Our research shows that when people are under pressure they will tend to revert to their more natural instinctive state. That is their natural DNA behaviors are more likely to take over. In the heat of the moment these behaviors may cause us to not act in a common sense way regardless of what we have learned, experienced before or generally what wisdom would suggest is the best choice.

Often people will revert to their natural behavior when they have gone through a very emotional event ? such as a divorce, business failure or been rejected in some way. It can also happen when something very positive happens like receiving a financial windfall, inheritance, or a business sale etc.

I just read some interesting research in the following Psychology Today article that highlights this point around how people may take higher risks when they have been rejected or gone through a negative emotional event – click here to read the article.

Of course, enhanced behavioral awareness can help you to manage how you will react but even then not always because we all have natural blind-spots.

Visit the Financial DNA website to learn more about our solutions for financial services and get started on your path to becoming a behaviorally smart advisor.

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